Latest Insights in Stock Market Investing
Lowering Cash-Secured Put Breakeven Price Points Means Greater Protection to the Downside with Lower Premium Returns
click ↑ 4 Featured When executing our cash-secured put trades in bear, volatile or uncertain market conditions, it is reasonable to structure our trades with lower breakeven price points. This will come at the expense of lower initial time-value returns. It is...
BCI PODCAST 162: Generating a 3 Income Stream Put Trade
We've all heard that the max return we can generate from a cash-secured put sale is the initial put premium. This podcast will debunk that hypothesis and show how trade results can be greatly enhanced using the power of exit strategy implementations. Watch...
Buffer ETFs and the Collar Strategy
click ↑ 4 Featured Buffer ETFs have become popular over the past few years. Covered call writers can draw a reasonable analogy between the collar strategy and these buffer securities. This article will highlight the similarities and draw some conclusions. What is a...
Rolling-Down a Covered Call Trade During a 3 1/2 Day Contract
click ↑ 4 Featured It is never too late to implement covered call exit strategy opportunities. In this real-life example with Howmet Aerospace Inc. (NYSE: HWM), a defensive covered call trade was rolled-down during a holiday-shortened week. Price movement for HWN was,...
Calculating Realized & Unrealized Returns for an Expiring Worthless Covered Call Trade
click ↑ 4 Featured We enter a covered call trade and share price declines, but not enough to trigger our 20%/10% BTC/ GTC limit orders (exit strategy buyback price points). The option expires worthless. There may be confusion on 2 fronts: How do we calculate our...
How to Calculate and Archive Results for a Rolling-Out-And-Up Covered Call Trade
click ↑ 4 Featured When a covered call trade is expiring in-the-money (ITM), we may have an opportunity to retain the underlying shares by rolling-out or rolling-out-and-up. The latter is a more aggressive form of rolling. This article will scrutinize a series of...
BCI PODCAST 160: Comparing Implied Volatility and Delta for Projected Option Trading Ranges
This podcast will detail how to craft 84% probability of success trades using Delta and implied volatility (IV). A conversion formula and spreadsheet will be discussed how to generate an IV for a specific option contract. Real-life examples with option-chain data are...
How to Earn More than a Maximum Return with a Defensive Covered Call Trade
click ↑ 4 Featured When crafting our covered call trades to offer greater protection to the downside, we favor in-the-money (ITM) call strikes. These provide lower breakeven price points because ITM strikes consist of both time-value and intrinsic-value. At-the-money...
Strike Selection After Rolling-Out Our Portfolio Overwriting Trades
click ↑ 4 Featured Portfolio overwriting is a covered call writing-like trading strategy. There are 2 distinctly defined goals: generating cash flow + retention underlying shares. Since deep out-of-the-money (OTM) strikes are used to align with the goal of share...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
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The Blue Collar Investor was founded with a simple mission: to empower everyday individuals with the knowledge to invest wisely in the stock market. Our blog focuses on demystifying stock options, providing readers with the tools they need to succeed. We believe that anyone can learn to invest effectively, regardless of their background or experience.
Our story began when our founder Dr. Alan Ellman, realized the lack of accessible resources for average investors. Determined to bridge this gap, we created a platform that offers comprehensive guides, expert tips, and real-world strategies. Today, The Blue Collar Investor is a trusted resource for thousands of readers seeking to enhance their financial literacy and achieve their investment goals.